How to Start a Grocery Business Like Instacart and Generate Handsome Revenue?

How to Start a Grocery Business Like Instacart and Generate Handsome Revenue?

Contactless delivery has become the new normal for the customers in the grocery business. The demand for grocery delivery apps like Instacart is increasing day by day. These delivery apps offer a great opportunity for grocery businesses to reach customers and serve them better. Budding entrepreneurs worldwide are looking to take advantage of this new market trend and launch their own grocery delivery platform. 

If you are planning to jump up the bandwagon and launch your own grocery delivery app like Instacart. Then, this post is a must-read for you. Here we will discuss:

  • How Does Grocery Delivery Apps like Instacart Make Money?
  • Grocery Delivery Service Apps Like Instacart: How To Start?
  • Must-Have Features for Grocery Delivery App Like Instacart
  • How Much Does It Cost to Develop a Grocery Delivery App?

How Does Grocery Delivery Apps like Instacart Make Money?

Now you know that there is a huge demand for grocery delivery apps like Instacart. Let’s dive deep into it and understand how these applications generate money. 

Delivery Fee

Grocery delivery apps like Instacart clone charge a particular fee from customers for every order placed. The delivery charges usually vary depending upon the time limit for delivery, distance, and value of the item purchased.

Partner Payments

Many businesses worldwide have partnered with the market leader for better customer reach. Grocery delivery apps charge a partnership fee and a commission per order to generate revenue.

Marking up products

Most of the items sold on grocery delivery platforms are marked up by 10-20% of their net cost. All the profits generated by selling items at marked-up price goes directly to the grocery delivery apps.

Service Charges

The grocery delivery app charges a compulsory service fee of 5% on every order. Depending upon how much profits you are looking to generate, you can charge a particular service charge from customers.

Subscription Fee

Grocery delivery apps like Instacart charge a particular subscription fee from their customers. With this, customers enjoy free delivery on orders above a particular cart limit.

Grocery Delivery Service Apps Like Instacart: How To Start?

Now you know how grocery delivery apps like instacart make money. Let’s have a look at how you can start an instacart business of your own. Similar to any brick-and-mortar business, you need to check out a list of things before launching a grocery delivery service app like Instacart.

Business Model

Before moving directly into the development stages, the first set is to choose a business model for your application. You need to decide whether you are looking to launch a single store with limited items or an entire grocery chain. While you are on this step, make sure you choose the right revenue model of Instacart clone and ways to work on commission charges.

App Features

Before moving on with the development process and getting in talks with a mobile app development company, make sure you have a list of features that you want in your grocery delivery app. While thinking about the app features, keep in mind that your ultimate goal is to provide users with an easy-to-use and navigate application.

App Design

We are not telling you to start drawing and creating a complete design for your application. Let professionals handle the same for you. But having a vague idea of exactly how your grocery delivery app’s design and interface will look will be a good start. This will surely help professionals to get an idea about what exactly you are looking for.

Consider the Software

This is the last stage, and after this, you can directly move to the development stages. In this stage, you need to think about the tech stack that you want to use in your grocery delivery application. Important tech stacks such as navigation payment gateways are some of the examples that you can add to your app like Instacart.

Take your time during and brainstorm all the possible outcomes. Keep in mind that your ultimate goal is to create an application that makes users’ life easy and easy to use. A user-friendly app is a great way to make your target audience your customer and customers into loyal customers.

Must-Have Features for Grocery Delivery App Like Instacart

Since there is a huge demand in the market for grocery delivery apps like Instacart, there are many players in the market offering similar services. To make your new business stand out among others and meet the needs of modern-day customers. Here’s a list of must-have features for your grocery delivery app like Instacart.

Grocery Delivery Customer App Features

  • User Friendly
  • Multiple Payment Options
  • High Speed
  • Eye-Catchy Design
  • Push Notification
  • Schedule Delivery
  • Real-time tracking
  • Customer Feedback

Grocery Driver App Features

  • Multiple Deliveries
  • Track Route
  • Accept/Decline new order
  • Live Tracking

Grocery Admin App Features

  • Product category
  • Order Status
  • Manage Customer
  • Custom Notifications
  • Manage Feedback
  • Insights/ Reports

How Much Does It Cost to Develop a Grocery Delivery App?

The cost to develop a grocery delivery app depends upon which development process you choose. Broadly speaking, there are two types of the development process to build an application:

  • Develop from scratch.
  • Opt for white label solutions.

Now let us discuss both these development processes in detail. If you choose to develop your grocery delivery app via scratch development process, then you will need to hire (whether remote or on-site):

  • Project Manager – 1
  • iOS Developers – 1/2
  • Android Developers – 2/3
  • UI/UX Designers – 1/2
  • Backend Developers – 1
  • QA Specialists – 2

The scratch development process is time-consuming, and as you are hiring a professional team, the development cost will be high. If you are planning to create an application with unique features or a completely new concept, then this development process is the best. Depending on what features you are looking to add to your application and its criticality, the development cost usually varies between $40,000 and $50,000.

On the other hand, white label solutions are time-saving and cost-effective solutions to launch an application. These are pre-built and ready-to-launch solutions, thus eliminating the need to hire a team of developers. The best thing about white label solutions for grocery delivery apps is that they can be easily customised to meet your business needs. And even with customizations, you can launch your application within eight to ten weeks. The development cost with white label solutions is $15,000 – $20,000. The prices might soar depending upon the features and customization you want with the application.

Wrapping Up

Hope now you have all the information regarding the grocery delivery apps like Instacart. With the demand for these platforms increasing day by day. Any entrepreneur or investor can create their own grocery delivery app like instacart and enjoy hefty returns. Make sure you choose the right white label solutions provider to buy and customise your application. These guys will make sure that your app works swiftly and offer a unique set of features.

If you have any queries about grocery delivery apps like instacart or white label solutions. Do share them in the comment section below, and our team will answer asap.

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